Overseas investment decision for case 201420015 - Connor Healthcare Limited

An overseas investment in sensitive land, being the Applicant's acquisition of rights or interests in up to 100% of the shares of Acurity Health Group Limited which owns or controls:

• a freehold interest in approximately 2.2204 hectares of land at Churchill Drive, Crofton Downs; and
• a freehold interest in approximately 1.3273 hectares of land at 500 Southland Road, Hastings.

An overseas investment in significant business assets, being the Applicant's acquisition of rights or interests in up to 100% of the shares of Acurity Health Group Limited, the consideration of which exceeds $100m.

The Applicant will be a subsidiary of Evolution Healthcare (NZ) Pty Ltd ("Evolution") and Austron Limited ("Austron").  Both Evolution and Austron currently have an ownership interest in Acurity Health Group Limited, which is a private healthcare provider, including owning and operating private hospitals such as Bowen and Royston Hospitals.  A takeover offer has been made for the remaining shares in Acurity Health Group Limited.

The Applicant intends to introduce new systems to Acurity Health Group Limited’s hospitals to improve efficiency.

The overseas investment transaction has satisfied the criteria in sections 16 and 18 of the Overseas Investment Act 2005. The 'benefit to New Zealand' criterion was satisfied by particular reference to the following factors:

Overseas Investment Act 2005
17(2)(a)(iv) – Greater efficiency or productivity

Overseas Investment Regulations 2005
28(e) – Previous investments
28(j) – Oversight and participation by New Zealanders